FedEx must brace for cuts in defense - The Tennessean
FedEx’s income from Pentagon contracts tripled in the last decade as the wars in Afghanistan and Iraq escalated and the military increasingly relied on commercial airlines to transport soldiers and supplies.
FedEx has received $1.1 billion in defense contracts during fiscal 2011, which ended Friday.
Between budget cuts and the gradual reduction of troops in Afghanistan and Iraq, companies such as FedEx that transport soldiers and military cargo will see “a very significant reduction” in defense contracts, said Richard Aboulafia, an aviation analyst at the Teal Group.
FedEx’s income from Pentagon contracts tripled in the last decade as the wars in Afghanistan and Iraq escalated and the military increasingly relied on commercial airlines to transport soldiers and supplies.
FedEx has received $1.1 billion in defense contracts during fiscal 2011, which ended Friday.
Between budget cuts and the gradual reduction of troops in Afghanistan and Iraq, companies such as FedEx that transport soldiers and military cargo will see “a very significant reduction” in defense contracts, said Richard Aboulafia, an aviation analyst at the Teal Group.
